§ 86206 Placement Agent Fee Exemption

• •It's okay to pay someone to help find investors for your money manager, as long as they follow the rules.
• •The helper must be registered with the government and follow special money rules.
• •There are some exceptions where this isn't allowed, but those are listed in another part of the law.

A money manager wants to find more people to invest in their fund.

They can hire a helper (called a placement agent) to find investors, but the helper must be officially registered and follow the rules. If the helper isn't registered, the money manager can't pay them.